Will 401k’s be Nationalized?

Recently there have been some extremely alarming discussions reported regarding a new program titled “Retirement USA”. Under this new Federal policy, the government can demand that a portion of your retirement contributions sweep into a “government-created” annuity that is funded by purchasing US Treasury debt.

It’s no secret, our government is drowning in debt. The effect of such a plan would mean funneling of more capital to Treasury securities and thus helping the US government finance itself.
Today, 73 Million Americans contribute into a 401k at their work, and the total held in these accounts has toppled over $5 Trillion. 401k plans fall under ERISA laws, and if the government decides to target them, the laws could easily be manipulated to handcuff the employee.

Currently in most companies, employees cannot move their 401k’s unless they retire, terminate employment, divorce or become totally disabled. This creates a situation where options are limited for the average employee, and the government knows it.

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